SHFE Zinc Records a Bearish Candle, Daily K-line Moves Downward [SMM Zinc Morning Comment Nov 29] 

Overnight, the US SEC approved the first exchange to conduct 5X23-hour trading; ECB Governing Council member stated that there are sufficient reasons for an interest rate cut in December; Israel and Hezbollah accused each other of violating the ceasefire agreement; OPEC+ online meeting was postponed to December 5; the General Office of the CPC Central Committee and the General Office of the State Council emphasized the need to cultivate and expand digital trade entities; the Bank of China Research Institute projected that China's GDP would grow by around 5% in 2025; the Ministry of Commerce responded to Trump's tariff hike, stating that China consistently opposes unilateral tariff increases; the Ministry of Commerce also responded to Biden's export controls, warning that if the US insists on escalating controls, China will take necessary measures.

Overnight, LME zinc opened at $3,140.5/mt, briefly rose to $3,168/mt at the beginning of the session, then fluctuated downward below the daily moving average to a low of $3,022/mt. It then slightly rebounded, fluctuating rangebound around $4,045/mt, and finally closed down at $3,047.5/mt, a decrease of $92.5/mt or 2.95%. Trading volume decreased to 95,219 lots, and open interest remained unchanged at 247,000 lots. Overnight, LME zinc recorded a large bearish candle, with the upper Bollinger Band forming resistance and the 60-day moving average providing support below. LME inventory increased by 7,725 mt to 268,625 mt, a rise of 2.96%. Although LME inventory increased, it remains relatively tight overall. The US dollar index slightly rose, and LME zinc may hover at highs.

Overnight, the most-traded SHFE zinc 2501 contract opened at 25,245 yuan/mt, initially rose to 25,325 yuan/mt, then fluctuated downward along the daily moving average to a low of 25,145 yuan/mt as longs reduced positions. It then fluctuated rangebound near the daily moving average and finally closed down at 25,215 yuan/mt, a decrease of 140 yuan/mt or 0.55%. Trading volume decreased to 170,000 lots, and open interest decreased by 6,531 lots to 151,000 lots. Overnight, SHFE zinc recorded a bearish candle, with the upper Bollinger Band forming resistance and the 10-day moving average providing support below. Currently, SHFE zinc is moving downward due to the exit of longs, but supply-side issues persist, which is expected to continue supporting zinc prices.